This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Sensient Announces Changes In Pay Practices

Stocks in this article: SXT

Sensient Technologies Corporation (NYSE: SXT) announced today that its Board of Directors has approved changes to the Company’s annual incentive compensation plan and long term incentive plan for elected officers. The changes, which are in response to shareholder feedback, are intended to create an enhanced linkage of executive pay and company performance.

Under the revised compensation practices, 50% of Sensient’s equity grants to elected officers in 2013 will consist of performance units, the ultimate value of which will be determined based on the achievement of pre-established performance goals. For the 2013 grant, the performance goals will be determined based on performance over a two year period compared to the weighted average of two performance metrics – EBIT growth (70% weight) and return on invested capital (30% weight). Prior to these changes, the Company’s equity grants have historically consisted of time vested restricted shares.

In addition to introducing performance based equity awards, Sensient has also made significant changes to its annual cash incentive plan for elected corporate officers. Beginning in 2014, the annual incentive plan for elected corporate officers will be determined and paid based on a weighted average of the Company’s achievement of three performance goals – earnings per share (50% weight), gross profit as a percentage of revenue (30% weight) and cash flow (20% weight).

These changes to the Company’s compensation practices are in response to shareholder feedback received during meetings that took place during the 2013 proxy season. During these discussions, shareholders indicated a desire to see more meaningful weight assigned in the Company’s incentive programs to targets other than earnings per share. Shareholders also expressed a desire to see a portion of the Company’s equity awards tied to achievement of pre-established performance goals so that the ultimate compensation realized by an executive is more closely tied to company performance.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs